Hapag-UASC Clears Merger Hurdle
German shipping line Hapag Lloyd has come a step nearer to merging with United Arab Shipping Company (UASC) following UASC's agreement to repay the company’s debts, reported Reuters.
Hapag-UASC’s merger, expected to close by end of 2017, would form the fifth-biggest shipping company globally with a combined value of about US$7.8-$8.9 billion.
This would provide Hapag Lloyd, which had reported losses in Q1 2017, larger ships and an Asia-Europe shipping route.
It remains unknown whether job cuts or removing shipping route duplications would be part of the merger.
Rolf Habben Jansen, Chief Executive of Hapag-Lloyd previously said that Q2 and Q3 of 2017 is when the integration will take place.
Negotiations were halted at the end of April this year due to the ocean shipping liner and the banks needing assurances from UASC's top shareholder Qatar.